Biden student debt relief handout blocked by federal appeals court

Biden's plan would cancel up to $20,000 in student loan debt for some borrowers and up to $10,000 for others

A federal appeals court on Monday agreed to a preliminary injunction to halt President Biden's plan to forgive student debt for millions of borrowers. 

The ruling by a three-judge panel in St. Louis' 8th U.S. Circuit Court of Appeals came days after a federal judge in Texas blocked the program.

"The injunction will remain in effect until further order of this court or the Supreme Court of the United States," Monday's ruling said. 

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President Joe Biden

A federal appeals court on Monday blocked President Joe Biden's student debt relief plan days after a Texas federal judge struck it down. (Kent Nishimura / Los Angeles Times via Getty Images / Getty Images)

The judge in the Texas case said the plan usurped Congress' power to make laws. The Texas case was appealed, and the administration is likely to appeal the 8th Circuit ruling as well.

In that ruling, U.S. District Judge Mark Pittman — a Trump appointee based in Fort Worth — was critical of the way the program moved ahead without congressional approval.

"In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government," he wrote.

The Biden administration has stopped accepting applications for the planned relief. The plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven.

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So far, 26 million people have applied for debt relief, and 16 million have been approved, White House press secretary Karine Jean-Pierre has said.

The Associated Press contributed to this report.